SEVERE EQUITY LOSSES, 1973-74, 2000-02, 2007- DROPS

The graph shows the three worst stock market crashes since the great
depression.

The black (generally on the top) line shows the percent change of the
S&P 500 total return index (assumes dividends are reinvested) compared
to its peak on January 11, 1973. We see that it did not get back to that
level for 3.5 years, and it took over six years before it really got much
higher. Keep in mind that inflation was high in the 1970s (remember President
Ford's WIN for Whip Inflation Now button?), so even after the total return
index recovered all of its losses, there was a loss in purchasing power.
This can be seen in the graph of the inflation adjusted Dow on an
earlier page.